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A project will produce after-tax operating cash inflows of $3,200 a year for 5 years. The...

A project will produce after-tax operating cash inflows of $3,200 a year for 5 years. The after-tax salvage value of the project is expected to be $2,500 in year 5. The project's initial cost is $9,500. What is the net present value of this project if the required rate of return is 16%?

Select one: a. -$311.02 b. $2,168.02 c. $4,650.11 d. $9,188.98 e. None of the above

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Answer #1

Ans is b.$ 2,168.02

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